* Forint outperforms CEE peers as Hungarian central bank meets * Bank seen holding rates, but may tweak swap tool-analysts * Hungarian yields edge up, no further big rise is seen-trader By Sandor Peto BUDAPEST, Sept 18 (Reuters) - Hungarian government bond yields edged slowly higher and the forint firmed marginally on Tuesday as the Hungarian central bank (NBH) holds a policy meeting which may give some details of future monetary tightening.
The forint traded at 324.74 against the euro at 0908 GMT, firmer by less than 0.1 percent, while its main Central European peers -- the Czech crown, the leu and the zloty -- eased about 0.1 percent.
Inflation has picked up in the fast-growing region in the past months, leading to a further increase in Czech interest rates and a temporary shift towards a less dovish tone in the NBH's language at its June meeting.
Hungary's annual inflation ran at 3.4 percent in August, still within the NBH's 2-4 percent target range.
Inflation risks increased when a global rally of the dollar knocked the forint to record lows beyond 330 versus the euro by July, and the NBH signalled that it no longer expected loose monetary conditions to remain through its policy horizon of 5-8 quarters. It did not repeat this message in July and August.
Pressure on the currency has eased since then and analysts said the bank probably did not want big movements from the current range in either direction.
In a Reuters poll, analysts unanimously predicted that the bank would keep both its 0.9 percent base rate and -0.15 percent overnight deposit rate on hold when it announces its rates decision at 1200 GMT.
But several analysts noted that a likely rise in the bank's forecasts in its quarterly inflation report would offer a peg for the bank to spell out some details of future monetary tightening.
They said it was likely to refrain from fuelling bets for a rise at the short end of the yield curve, which could boost the forint.
But it may tweak its monetary policy interest rate swap instrument (MIRS) which has provided liquidity to banks for buying long-term government bonds.
Hungary's 10-year benchmark bond yield reached 2-1/2-month highs on Monday. Early on Tuesday it traded at 3.65 percent, up 2 basis points from Monday's fixing.
"I do not think, though, that a tweak in the MIRS tool would cause an upheaval," one Budapest-based fixed income trader said, adding that the bank had planned to end the instrument at the end of the year anyway.
Polish and Czech government bonds were mixed and rangebound.
Equities were also mixed. Warsaw's bluechip index jumped 1.1 percent, rebounding from Monday's 8-week lows, driven by bank stocks.